VAN NUYS, Calif.--(BUSINESS WIRE)--Superior Industries International, Inc. (NYSE:SUP) today
announced financial results for the fiscal year and fourth quarter ended
December 30, 2012, along with plans to build a new manufacturing
facility in Mexico to expand capacity and meet anticipated growth in
product demand.

Net income for the full 2012 year amounted to $30.9 million, or $1.13
per diluted share, compared with $67.2 million, or $2.46 per diluted
share, in 2011. The net income decline largely reflected a swing to
income tax expense of $3.6 million in 2012 from a $25.2 million income
tax benefit in 2011.

Net sales for 2012 declined slightly to $821.5 million from $822.2
million in 2011. A 7 percent increase in unit sales volume for 2012 was
offset by a reduction in average selling price, primarily due to a
decline in aluminum prices. Unit shipments rose to 12.5 million in 2012
from 11.7 million units shipped in the prior year.

Gross profit for 2012 declined to $60.6 million, or 7 percent of net
sales, from $67.1 million, or 8 percent of net sales, in 2011. The 2012
gross profit included a $3.5 million non-cash benefit from resolution of
a foreign consumption tax issue. The company said the decline in gross
profit and margin percentage reflected the impact of higher levels of
manufacturing costs, principally labor and maintenance. The increase in
manufacturing cost resulted from higher sales volume, as well as
equipment reliability and other challenges that reduced operating
efficiencies, especially in the older U.S. facilities. The company
continued to operate its factories at high utilization rates throughout
the year.

“The opportunities and challenges in our business have clarified the
next steps to improve our operating returns,” said Steven J. Borick,
Chairman, Chief Executive Officer and President. “Superior remains the
premier aluminum wheel manufacturer in a healthy and growing North
American automotive market. While our operations in Mexico consistently
have performed at class-leading levels, it has been evident we are not
currently positioned to participate fully in North American market
growth. Accordingly, after a thorough evaluation of ways to deploy our
capital, we have decided to expand our manufacturing footprint by
constructing a new manufacturing facility in Mexico, where significant
light vehicle assembly expansion has been announced or already is
underway.”

Borick said Superior intends to invest approximately $125 million to
$135 million to construct and equip the new manufacturing facility,
which will have an initial capacity to produce between 2 million and 2.5
million wheels a year. The company currently produces approximately 12.5
million wheels annually. He said a specific site within Mexico still is
being identified, with groundbreaking targeted for around the middle of
2013 and completion of construction anticipated about two years later.
Architectural plans currently are underway. Borick said existing
liquidity is adequate to fund the project, but the company is evaluating
credit options.

Superior plans to make further enhancements to its existing operations
in both the U.S. and Mexico. Capital expenditures amounted to $23
million in 2012, which was more than a one-third increase over the prior
year. The company expects to increase the pace of reinvestment in
current factories in 2013 with a goal to improve process capability and
operating efficiency, especially in the U.S. More than two-thirds of
capital expenditures in 2012, or almost $16 million, were invested in
the company’s older manufacturing facilities in the U.S., which
supported just under 40 percent of total unit sales volume for the past
year.

“I am excited about this next milestone step for Superior and for our
future prospects. We believe there are great opportunities to improve
the company’s operating performance, which we believe should translate
to enhanced shareholder value. We remain committed to retain our
position as the premier aluminum wheel supplier to the North American
automotive industry,” Borick added.

Consolidated selling, general and administrative expenses for 2012 were
$27.7 million, compared with $25.9 million for 2011. The increase
primarily reflected a $1.5 million benefit in 2011 for reduction in the
deferred compensation liability. SG&A expense was 3 percent of net sales
in both 2012 and 2011.

Income from operations decreased to $32.9 million from $39.8 million a
year ago, largely mirroring the gross profit decline.

The 2012 effective income tax rate was 10.4 percent and was impacted
favorably by an $8.1 million reversal of accruals primarily due to
settlement of a Mexico tax audit. The 2011 income tax benefit resulted
from a $42.3 million release of valuation allowances for U.S. and Mexico
deferred tax assets, partially offset by tax expense for U.S. and
foreign income and other tax adjustments recognized during the year.

Fourth Quarter Results

Consolidated net sales for the 2012 fourth quarter declined 3 percent to
$210.0 million from $216.8 million in the previous year. The decline
principally reflected flat sales volume and a reduction in average
selling price due to lower aluminum prices. Unit shipments were 3.2
million in the fourth quarter of both 2012 and the prior year.

Gross profit for the 2012 fourth quarter declined to $12.8 million, or 6
percent of sales, from $18.1 million, or 8 percent of sales, for the
fourth quarter of 2011. Higher cost for the current year was incurred
for maintenance and labor, partially offset by lower aluminum prices
which generally are passed through to customers.

Consolidated selling, general and administrative expenses for the fourth
quarter of 2012 were $7.4 million, or 4 percent of net sales, compared
with $6.2 million, or 3 percent of net sales, for the comparable period
in 2011. The increase primarily reflected a $1.5 million benefit in 2011
for reduction in the deferred compensation liability, offset partially
by lower net cost in 2012.

Income from operations was $5.4 million in the 2012 fourth quarter,
compared with $10.8 million for the fourth quarter of 2011, with the
change primarily paralleling the gross profit decline.

Fourth quarter 2012 income tax expense was $2.6 million, which compares
to an income tax benefit of $28.2 million in the fourth quarter of 2011.
Included in 2011 is the income tax benefit resulting from the release of
valuation allowances established in prior years against deferred tax
assets, partially offset by expense for income taxes on U.S. and foreign
income.

Balance Sheet

At fiscal year-end December 30, 2012, working capital was $338.3
million, including cash, cash equivalents and short-term investments of
$207.3 million. At fiscal year-end December 25, 2011, working capital
was $335.7 million, including cash, cash equivalents and short-term
investments of $192.9 million. The company has no bank or other interest
bearing debt.

Conference Call

Superior will host a conference call beginning at 10 a.m. PT (1 p.m. ET)
on Friday, March 1, 2013 that will be broadcast on the company's
website, www.supind.com.
Interested parties are invited to listen to the webcast. In addition, a
PowerPoint presentation will be posted on the company's website and
referred to during the conference call. The webcast replay will be
available at the same Internet address approximately one hour after the
conclusion of the conference call and will be archived for approximately
one year.

During the conference call, the company's management plans to review
operating results and discuss other financial and operating matters. In
addition, management may disclose material information in response to
questions posed by participants during the call.

About Superior Industries

Superior is the largest manufacturer of aluminum wheels for passenger
cars and light-duty vehicles in North America. From its five plants in
both the U.S. and Mexico, the company supplies aluminum wheels to the
original equipment market. Major customers include Ford, General Motors,
Chrysler, BMW, Mitsubishi, Nissan, Subaru, Toyota and Volkswagen. For
more information, visit www.supind.com.

Forward-Looking Statements

This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements, which include, but are not limited
to, the company’s plans to construct a new manufacturing facility in
Mexico, the location, cost, capacity or time of groundbreaking for a new
manufacturing facility and the related impact on the company’s operating
performance and financial condition, future liquidity and credit
options, future capital spending for existing operations, enhancing
existing operations, and improving performance in U.S. plants, are based
on current expectations, estimates and projections about the company's
business based, in part, on assumptions made by management. These
statements are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict.Therefore,
actual outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements due to numerous factors
and risks discussed from time to time in the company's Securities and
Exchange Commission filings and reports, including the company's Annual
Report on Form 10-K for 2011 and for 2012 once filed.These
factors and risks relate to items including, but not limited to, general
automotive industry and market conditions and growth rates, as well as
general domestic and international economic conditions. Such
forward-looking statements speak only as of the date on which they are
made and the company does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after the
date of this release.